This Article is From Aug 13, 2021

Flights To Get Costlier As Government Raises Fare Caps 4th Time This Year

This is the fourth hike in airfare caps this year. Ticket prices were revised in February, May and June earlier.

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India News Edited by

Airfare caps have been raised between 9 to 12 per cent. (Representational)

New Delhi:

Flight tickets are about to get more expensive as the government has raised the price cap on domestic airfares for the second time in just over two months by 9 to 12 per cent.

In an order dated Thursday, the lower limit for flights under 40 minutes of duration was raised from Rs 2,600 to Rs 2,900 - an increase of 11.53 per cent, by the Civil Aviation Ministry.

The upper cap for flights under 40 minutes of duration was also increased by 12.82 per cent to Rs 8,800.

Flights with a duration between 40-60 minutes will now have a lower limit of Rs 3,700, up from Rs 3,300 while the upper cap on these flights has gone up by 12.24 per cent to Rs 11,000 from Friday.

Flights between 60-90 minutes will have a lower limit of Rs 4,500 - an increase of 12.5 per cent. The upper cap on these flights was increased by 12.82 per cent to Rs 13,200.

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Similar hikes have been imposed on journeys between 90-120, 120-150, 150-180 and 180-210 minutes.

Actual ticket prices, however, are likely to be higher than the caps since these do not include the passenger security fee, user development fee for the airports and the Goods and Services Tax.

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This is the fourth hike in airfare caps this year. Ticket prices were revised in February, May and June earlier.

The government had introduced the caps in May last year after domestic flights resumed following the two-month nationwide COVID-19 lockdown.

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According to the government, the lower caps were imposed to help the airlines that have been struggling financially after the coronavirus crisis.

The upper caps were imposed so that passengers are not charged huge amounts when the demand for seats is high, it had said.

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The government's order on Thursday said that the latest revisions were done keeping in mind the "prevailing situation of COVID-19" in the country.

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